Wu Blockchain has learned that lawyer Ariel Givner stated that the lawsuit involving approximately $42.4 million USDT frozen by Tether may stem from a 'pig-butchering' scam case in North Carolina, USA. Following victim-provided leads, the Homeland Security Investigations (HSI) Raleigh office informally requested Tether on October 31, 2025, to blacklist the Ethereum addresses of two Thai plaintiffs, despite the absence of a search warrant or prior notice at the time. On February 19, 2026, the U.S. District Court for the Eastern District of North Carolina subsequently issued a seizure order, instructing Tether to destroy the frozen USDT and reissue it to a government wallet. Five days later, local law enforcement announced the seizure of approximately $61 million USDT, claiming the funds were linked to money laundering proceeds from the 'pig-butchering' scam. The plaintiffs did not dispute the government’s classification of the USDT as fraud-related funds but argued that Tether froze secondary market holders' assets before the court order was issued. They also questioned whether subsequent orders authorized Tether, as a private issuer, to freeze, destroy, or reissue these tokens, and demanded the recovery of profits Tether earned from reserve assets during the freeze period. https://(wublock123.com)/news/news-67629